Capcom Financial Highlights: Fiscal Year Ended March 31, 2013

Key insights

6 takeaways

01
Capcom reported net sales of 94,075 million yen for the fiscal year ending March 31, 2013, but net income fell to 2,973 million yen due to restructuring costs and underperforming packaged software.See it on page 8
02
The company incurred 7,224 million yen in special losses related to organizational restructuring, which significantly impacted overall profitability.See it on page 5
03
The Amusement Equipments segment acted as a primary growth driver, led by the success of the Resident Evil 5 pachislo machine, which sold approximately 48,000 units.See it on page 7
04
Digital Contents growth was driven by the Beeline mobile brand, which surpassed 100 million cumulative downloads, and social games, which reached 8.6 million registered users.See it on page 18
05
Traditional packaged software underperformed expectations, specifically due to Resident Evil 6 missing internal projections and the delay of Monster Hunter 4.See it on page 15
06
The Arcade Operations segment experienced a 5% decline in existing-store sales, though stable operating margins were maintained through facility closures and cost management.See it on page 19

Summary

The fiscal year ending March 31, 2013, represented a period of transition for Capcom, characterized by a strategic shift toward digital expansion and business restructuring. While the company achieved net sales of 94,075 million yen—a year-over-year increase—operating income declined to 10,151 million yen. This discrepancy was primarily driven by lower-than-anticipated profitability in the consumer packaged software business, compounded by significant special losses of 7,224 million yen related to organizational restructuring. Consequently, net income fell to 2,973 million yen.

The company’s performance was bifurcated across its business segments. The Digital Contents division saw growth in online and mobile sectors, with mobile titles reaching over 100 million cumulative downloads under the Beeline brand and social games surpassing 8.6 million registered users. However, packaged software sales struggled, as major titles like Resident Evil 6 underperformed relative to internal projections and the release of Monster Hunter 4 was delayed. Conversely, the Amusement Equipments business served as a major growth engine, with net sales rising significantly due to the success of pachislo machines, particularly the Resident Evil 5 model, which sold approximately 48,000 units.

Geographically, the company maintained a global focus, leveraging its "Single Content Multiple Usage" strategy to extend the reach of its intellectual properties through movies, television, and stage productions. Despite a 5% decline in existing-store sales within the Arcade Operations segment, the company maintained stable operating margins through rigorous cost management and the closure of underperforming facilities. Overall, the fiscal year results aligned with the revised forecasts issued in April 2013, reflecting a period where gains in digital and amusement equipment segments were offset by the volatility of the traditional home video game market and the costs associated with long-term business realignment.